As we’re waving goodbye to 2019 and ushering in the new decade, it’s time to start thinking about all the trends that’ll affect car sales in 2020.
Debt-Riddled Millennials Are Becoming The Largest Buying Group
Don’t worry, Baby Boomers and Gen Xers are still buying cars. But as we move into 2020, millennials are now between the ages of 23-37, making them not only the youngest independent buying group but now also the largest. Unfortunately, many of these millennials come with large amounts of student and personal debt.
Because of this debt, many millennials aren’t looking for the newest or flashiest rides like generations before them were. Many millennials are looking for more affordable driving options. They’re willing to pay for something that’ll last, but they’re not willing to pay for something just because it’s popular. This fact alone could and should dramatically change how dealers are stocking their lots in 2020.
Want to learn more about how millennials are affecting the car industry? Click to read our post Are Millennials Killing The Car Business.
Ride-Sharing Will Continue To Grow
With many customers viewing ride-sharing as a convenient alternative to public transportation, and drivers viewing it as an easy way to make extra cash, programs like Uber and Lyft will only continue to grow in the coming year.
With ride-sharing growing, the demand for affordable mid-sized cars is also growing. Gently used and affordable mid-sized cars are the preferred vehicle of both ride-share drivers and riders. That means higher pricing and more competition for you at the auction to keep these vehicles in stock. And with dealers already reporting inventory shortages in 2019, 2020 is only going to continue the trend of inventory struggles.
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Electronic Vehicles Are Growing In Popularity, But Not Among The Middle Class
Even for people not plugged into car industry news, it’s hard to avoid all the talk about electric vehicles. But while electric vehicles are selling at a high rate, it’s also been reported that the middle class isn’t the ones buying these electric vehicles.
In truth, reports are saying that the middle class isn’t even considering electric vehicles as a viable buying option. Instead, they’re focusing on affordable options like used vehicles or new vehicles from affordable brands. Further driving up the price and demand for gently used cars at auction.
Online Car Shopping Continues To Grow
Trendy new ways to buy a car, such as online or from an app, was a big topic throughout 2019 and it’ll only continue to dominate the conversation in 2020 as these car-buying alternatives are reporting record-breaking sales.
But just because these new alternatives are thriving, doesn’t mean all customers want to buy their cars this way. Not every customer want’s the technology-driven car buying experience. What these shoppers do want is a customer-service oriented buying experience. In an age where you could just buy your car online and skip the dealership, it’s up to the dealerships who want to survive to rise to the occasion and create a buying experience powerful enough to continue to attract customers.
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